Deer Consumer Products, Inc. Updates Share Buyback Program for the Second Quarter 2010, Continues to Maintain Solid Cash Position and Rapid Growth
NEW YORK, July 15 /PRNewswire-FirstCall/ -- Deer Consumer Products, Inc. (Nasdaq: DEER; website: http://www.deerinc.com/), one of the world's largest vertically integrated designers and ODM/OEM manufacturers of home and kitchen electronics marketing to both global and China domestic consumers, is updating the progress of the Company's previously announced $20 million share buyback program for the second quarter ended June 30, 2010.
During the second quarter, executed through qualified US brokerage firms, Deer purchased from the public market from time to time a total of 589,700 shares of Deer common stock. These shares exited the DTC, were cancelled and returned to treasury. These buyback shares have directly reduced shares available for trading in the public float.
Deer paid on average $8.42 per share, or between $7.761 and $9.735 per share in the public market for these buyback shares. Deer management believes the continued share buyback program, executed at these current depressed market price levels and valued at single digit price to earnings multiples, reflects its confidence in Deer's fundamental business and is an excellent use of shareholders' capital.
At the end of the second quarter, after applying company funds used in the share buyback, Deer had a solid cash position of more than $74 million in cash without any long term debt. Deer has sufficient cash on hand to rapidly grow its business as well as continuing the share buyback program.
Deer has continued to execute its share buyback program in the third quarter beginning July 1, 2010. From time to time, Deer will provide updates on the progress of the share buyback program during the third quarter.
Management believes the current positive market environments in its international and China domestic markets continue to provide strong organic earnings growth opportunities for the Company. Deer is also pleased with the Company's solid execution of its growth strategies.
Deer has previously stated that based on the Company's financial results at the end of the second quarter, Deer anticipates reporting, before August 15, 2010, the best second quarter earnings in Deer's corporate history.
About Deer Consumer Products, Inc.
Deer Consumer Products, Inc. (Nasdaq: DEER; website: http://www.deerinc.com/) is a NASDAQ Global Select Market listed U.S. registered public company headquartered in China. Deer has a 15-year operating business as well as a strong balance sheet. Supported by more than 103 patents, trademarks, copyrights and approximately 2,000 company-trained seasonal and full time staff, Deer is a leading designer, ODM/OEM manufacturer and global marketer of quality small home and kitchen electric appliances. Deer's product lines include blenders, juicers, soy milk makers and a large variety of other home appliances designed to make today's lifestyles simpler and healthier. With more than 100 global clients/branded products such as Black & Decker, Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics and Wal-Mart, and rapidly expanding China domestic market footprint, Deer has enjoyed rapid sales and earnings growth in recent years.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer's filings with the Securities and Exchange Commission.
Contact Information: |
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Corporate Contact: |
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Ms. Helen Yongmei Wang |
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Deer Consumer Products, Inc. |
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Tel: 011-86-755-86028285 |
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Email: [email protected] |
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SOURCE Deer Consumer Products, Inc.
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